AI Infrastructure
PJM grid to implement temporary power cuts for large data centers starting 2027
America's largest power grid will interrupt service to data centers 50 megawatts and larger during shortages, compensating affected operators as demand vastly outpaces generation capacity.
TechCrunch — AI
The PJM Interconnection, which supplies electricity to 67 million people across the eastern United States from Virginia to Illinois, is taking a dramatic step to manage mounting power demands. The grid operator announced it will temporarily shut off power to large data centers during periods of shortage to prevent wider blackouts across the network.
The capacity crunch#
Data center construction has accelerated rapidly, but the grid's generation capacity hasn't kept pace. PJM recently held an auction aimed at securing additional power supply, but the results fell short of what was needed. By 2035, data centers alone are projected to consume 4x more electricity compared to current levels—a trajectory that reflects the explosive growth of AI infrastructure across the country.
How the curtailment will work#
The power cuts will begin in June 2027 and target only data centers with a capacity of 50 megawatts or larger. Following practices used for decades with other industrial consumers, operators whose power is curtailed will receive compensation. Advance notice typically ranges from 30 minutes to several days, depending on grid conditions and demand forecasts. PJM is preparing a second auction for additional generating capacity.
The backup generator problem#
Without guaranteed grid access, data centers are likely to invest in on-site power generation—a development that carries environmental and economic trade-offs. Many facilities favor diesel generators because fuel availability and on-site storage are straightforward. However, federal rules permit such generators to operate only 50 hours annually for demand response events, or up to 100 hours when accounting for emergencies and maintenance.
Recent controversy has highlighted these concerns: Vantage Data Centers faced scrutiny over its apparent collaboration with Virginia regulators to challenge a study estimating that diesel backup systems at a 96-megawatt facility in Northern Virginia could cause tens of millions in annual health damages.
